Strap in, market maniacs—this week is set to bring a mix of high-stakes earnings, political cliffhangers, and the latest in economic data. With Disney, the latest inflation numbers, and a high-profile election, this week could light up portfolios—or burn them down. Here’s your playbook for what to watch and how to approach your trades.

Key Takeaways for the Week

Earnings Bonanza: We’re neck-deep in earnings season, with heavy hitters like Disney, Palantir, and CVS all dropping numbers.
Election Showdown: Tuesday’s election could drive major market swings, with industry-specific impacts depending on whether Harris or Trump takes the lead.
Fed and CPI Data: Thursday’s inflation data is under the microscope, especially after last week’s Fed “pause” on rate hikes. A hot inflation report could turn the rate hike chatter back up.

Earnings Highlights

This week’s lineup of earnings includes some big-name companies across tech, healthcare, entertainment, and retail. Here’s what’s coming up:

Monday, November 6

Palantir (PLTR): AI and government contracts are driving Palantir’s growth story. Bulls want to see a strong beat here, capitalizing on AI hype and profitability momentum.
AMC Entertainment (AMC): Still trying to stay afloat post-COVID, AMC needs a good showing in cost-cutting and box office revenue gains to ease investor nerves.
NXP Semiconductors (NXPI): As a major player in automotive chips, NXPI’s results will offer a read on the strength of the automotive market and supply chain dynamics.

Tuesday, November 7

Marriott (MAR): The hotel giant’s earnings will give insight into travel demand and whether people are still willing to pay premium prices in this economy.
Zoetis (ZTS): This animal health leader is riding a post-COVID pet boom, but analysts will be looking for steady growth in veterinary products.
DuPont (DD): Industrial demand and inflationary pressures on materials will be key indicators for DuPont’s earnings.
Arm Holdings (ARM): Fresh off its IPO, Arm is still adjusting to public market scrutiny. The focus is on its licensing revenues and potential AI-driven growth.

Wednesday, November 8

CVS Health (CVS): Growth in health services and prescription revenue will determine if CVS can counter retail pressures.
Disney (DIS): Disney’s in the hot seat with challenges in streaming, parks, and ESPN. Can Iger’s new strategy deliver?
Lyft (LYFT): Uber’s scrappy competitor needs to show cost control and market share growth to win over the skeptics.
Qualcomm (QCOM): 5G and smartphone demand are cooling, so QCOM will have to show resilience and competitive strength in chips to win investors back.

Fed, Election, and CPI Data

Last week, the Fed pressed pause on rate hikes, but this week’s speeches from officials will have the market on edge. Don’t be fooled—this is a brief break, not a full stop. Any hint of hawkishness could spook the markets, meaning December could bring another rate hike if inflation remains stubborn.

CPI Release - Thursday, Nov 9

The October Consumer Price Index report drops Thursday, and it’s a key inflation indicator. Lower energy prices have markets hoping for softer inflation, but housing costs and wage growth might throw a wrench in that plan. A surprise here could lead to some market tremors.

Election Drama - Tuesday, Nov 5

This election is a major pivot point for markets, with two very different possible paths:

If Harris Wins:

Green Energy Rally: Renewables, EVs, and green energy stocks would likely get a strong boost from anticipated policies and incentives.
Healthcare Regulation: A Harris administration could bring tougher drug pricing regulations, impacting pharma and health insurers.
Corporate Taxes: Expect potential tax hikes, which may hit high-earning sectors like tech and industrials hard.

If Trump Wins:

Defense and Energy Surge: Deregulation of fossil fuels and increased defense spending could see stocks in these sectors rally.
Tax Environment: Lower corporate taxes are likely to stay, with companies potentially doubling down on stock buybacks.
Trade War Redux? A Trump victory could mean renewed trade pressures on China, which might bring volatility to tech and manufacturing stocks reliant on Chinese production.

Options Plays for Earnings Week

For those in the options world this week, here are some tailored strategies:

1. Palantir (PLTR)

Straddle – Buy both a call and a put at the current strike. Palantir has a history of big swings, and a straddle lets you capture a move in either direction.

2. AMC Entertainment (AMC)

Put Spread – If you’re bearish, buy an at-the-money put and sell a lower strike put. This strategy caps both risk and reward, ideal for a company fighting against a rough macro backdrop.

3. Marriott (MAR)

Bull Call Spread – Buy a call and sell a higher strike call. Marriott’s international growth could show enough strength for a modest move upward, perfect for a lower-risk play.

4. Zoetis (ZTS)

Options Strategy: Long Call – Bullish on the pet boom? A simple call here could capture the upside from continued strength in animal health.

5. NXP Semiconductors (NXPI)

Iron Condor – With less post-earnings volatility expected, this strategy profits if the stock stays within a defined range. Sell a call and put, hedge with a higher call and lower put.

6. DuPont (DD)

Diagonal Put Spread – Expecting a dip but long-term recovery? Buy a long-dated put and sell a shorter-term one to capitalize on near-term pressure.

7. CVS Health (CVS)

Covered Call – If you hold CVS stock and see steady gains, sell a call above the current price to generate extra income. Ideal for sideways to slightly bullish moves.

8. Arm Holdings (ARM)

Long Call – A call with time until expiration could pay off if Arm delivers positive updates, especially if AI demand drives demand for its designs.

9. Disney (DIS)

Bull Put Spread – Sell a put below the current price and buy a lower put to hedge. Disney’s earnings could give it a modest boost if it’s steady on streaming and parks.

10. Lyft (LYFT)

Naked Put – Willing to own Lyft at a lower price? Sell a put below the current price to earn premium. If it holds, you pocket the premium; if not, you get in at a discount.

11. Qualcomm (QCOM)

Strangle – Buy an out-of-the-money call and put. Qualcomm often has big post-earnings moves, so a strangle lets you capture gains in either direction.

Final Tip: Navigating Volatility

With this week’s earnings, CPI data, Fed speeches, and an election all on deck, expect higher-than-usual volatility. Remember, high implied volatility can make options more expensive, so consider strategies like spreads or selling options where you’d be willing to own shares. Focus on your key indicators, hedge where necessary, and know when sitting tight is the right call.

Whether you’re in for the long haul or trading the swings, this week will be a proving ground for the market’s direction as we close out 2023. Buckle up!

Tea Leaves

This Week in the Markets: Earnings, Election Drama, and the Fed's Next Move